China’s ChangXin launches $4.3B memory IPO into an AI-driven chip boom

ChangXin Memory Technologies (CXMT) is about to open subscription for its Shanghai IPO worth about 29.5 billion yuan (approximately 4.33 billion dollars) on July 16. This is significant not only because CXMT is the largest DRAM producer in China, but also because investors can use this event to evaluate the potential of the company in light of AI developments.

This listing comes about as the memory market across the globe is changing due to developments in AI infrastructure. Companies in the cloud business have started to set up AI data centers that require new technology with higher volume and speed, particularly in high-bandwidth memory (HBM) and DRAM.

With that, motherboard producers have prioritized higher profit-margin memory models. The shift has tightened supply and resulted in the continuous increase in memory prices.

Interest in CXMT has spread outside of China as well. According to Financial Times, Apple is checking the Chinese memory chip company’s products for their China-based devices, which proves the increased importance of Chinese manufacturers.

However, the process might turn out to be distorted due to geopolitical reasons supplied by new restrictions introduced by Washington regarding semiconductors. Cryptopolitan had reported previously that new developments in the U.S. will complicate Apple’s path in that direction.

This IPO comes as a result of the company’s quick financial recovery from losses it faced last year, making it now one of the key semiconductor IPOs in China.

The mechanics of the offering

As revealed by CXMT’s STAR Market documentation, preliminary bidding will begin on July 13 and the final IPO price announcement will happen on July 15. The institutional and retail subscriptions will commence on July 16 under the code 688825 for securities, while for online, the code will be 787825, and payment should be made by July 20.

CXMT intends to sell approximately 6.69 billion shares which will be around 10% of the enlarged share capital. The lead underwriter China International Capital Corporation also has an over-allotment option of 15% which may take the total number of shares under sale to over 7.69 billion shares.

CXMT aims to raise 29.5 billion yuan, making it the second-largest IPO in the history of Shanghai’s STAR Market after Semiconductor Manufacturing International Corporation and the largest A-share listing of 2026, according to the China Securities Regulatory Commission (CSRC).

From losses to record earnings

CXMT’s financial performance has improved sharply alongside the industry’s recovery.

Caixin reported that the company posted a first-quarter net profit of 33 billion yuan after recording a 2.8-billion-yuan loss a year earlier, while revenue surged 719% year over year to 50.8 billion yuan.

The momentum is expected to continue. National Business Daily reported that CXMT forecasts first-half 2026 revenue of 110 billion to 120 billion yuan and net profit of 50 billion to 57 billion yuan, representing year-over-year profit growth of between 2,244% and 2,544%.

The company credits its recovery to restrained supply of DRAM products combined with increased pricing as demand related to AI has taken up all production capacity of the sector.

China’s flagship DRAM maker

Founded in 2016, CXMT is based in Hefei, Anhui and it is currently the largest DRAM manufacturer in China. It supplies memory chips to mobile phones, computers, servers and other computing devices. Its founder, Zhu Yiming, who was also behind GigaDevice, is the major stakeholder of the firm.

In June, the company got the approval from the CSRC for registering on the STAR Market, clearing the way for the IPO

Though it is still lagging behind Samsung Electronics, SK Hynix and Micron Technology in cutting-edge memory technologies, CXMT is still the leading manufacturer of DRAM in China. News that Apple is testing its chips indicates that foreign companies are becoming interested in China amid ongoing geopolitical conflicts.

Riding the AI memory supercycle

CXMT is going public during what industry experts refer to as a “memory supercycle.”

According to TrendForce, DRAM contract prices are projected to rise 13-18 percent in Q3, while NAND flash prices are estimated to increase by 10-15 percent due to shifting production capacities toward AI server memory. Gartner projects that overall revenue within the semiconductor sector might approach $1.3 trillion in 2026, with memory segment contributing to approximately 50 percent of the growth in the industry.

Leading cloud computing organizations are buying up huge quantities of memory dedicated to AI projects, thereby leaving little room for supplies for other potential customers and pushing DRAM prices higher, according to the report by TrendForce.

Unlike the previous cycles that were powered mainly by mobile phone and PC upgrades, the current rally is linked to the structural demand for AI infrastructure. One of the reasons behind this phenomenon is that memory manufacturing capacities are not easily increased in a short time, which has resulted in increasing production of HBM and enterprise DRAM, affecting availability of mainstream products and supporting elevated prices.

The favorable state of the market has obviously played into the hands of its competitors. South Korea’s SK Hynix is preparing for a U.S. ADR offering of about $28 billion ahead of its July 10 Nasdaq debut. If completed as planned, the transaction would become the largest foreign listing in U.S. history and the world’s second-largest share sale.

Investor sentiment regarding CXMT remains optimistic. Even though the IPO aims to raise 29.5 billion yuan, the estimates provided by National Business Daily claim the company’s value to be between 2 and 3 trillion yuan.

The valuation seems to be supported by the expectations of investors concerning the ability of CXMT to shorten the technological gap between the Chinese manufacturer and the global market leaders although maintaining such valuation will depend on the company’s ability to consistently bring new advanced DRAM technologies into commercialization rather than relying solely on favorable market conditions.

Founder commits to long-term stake

As stated by National Business Daily, Zhu Yiming has committed to not selling any of his shares within ten years following the timeframe of the IPO. In the following years, Zhu will sell up to 20% of his remaining holdings each year which is one of the longest-held voluntary lock-up commitments made by a founder of an A-share company.

Zhu is also preparing to allocate 768 million shares to his staff over the course of 10 years starting three years after the IPO. The value of the stock package is projected to be higher than 20 billion yuan based on the recent market prices, making it the largest individual employee equity grant in A-share market history, according to National Business Daily.

When subscriptions begin on July 16, the demand from investors will act as the initial test of the market’s confidence. Moreover, the IPO is predicted not only to reflect the success of the fundraising but also how high on the scale the investors put China’s aspiration to create a genuinely competitive memory sector during an AI semiconductor boom period. With Yangtze Memory Technologies also preparing for an IPO, CXMT’s debut could set the benchmark for future Chinese chip listings.

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